Seminar 228.443: Advertising
description
Transcript of Seminar 228.443: Advertising
1
Seminar 228.443:AdvertisingDr. Teri Shaffer
2
Introduction to Advertising Types of advertising Advertising industry Advertising trends
3
What Is Advertising?
Paid, nonpersonal communication Identified sponsor Using mass media To inform, persuade, or remind An audience
4
InteractiveAdvertising
Public ServiceAdvertising
InstitutionalAdvertising
Business-to-Business
Advertising
Brand Advertising
Retail or LocalAdvertising
PoliticalAdvertising
Direct-ResponseAdvertising
DirectoryAdvertising
Types of Advertising
5
Brand Advertising
6
Brand Advertising
7
Brand Advertising
8
Retail Advertising
&
Institutional Advertising
9
Retail Advertising
&
Brand Advertising
10
Retail Advertising
11
Retail Advertising
12
Political Advertising
13
Directory Advertising
14
Direct-Response Advertising
15
B2B
16
Institutional Advertising
17
Institutional Advertising
18
Public Service
Advertising
(PSA)
or
AdvocacyAdvertising
19
Public Service Advertising
20
Interactive Advertising
21
Comparative Advertising
22
Advertising & Demand
Competitive brand advertising Comparative advertising Build secondary demand Pioneering advertising Build primary demand
23
Pioneering Advertising
24
Pioneering Advertising
25
Advertising Industry
US Government StatisticsUs Bureau of Labor Statistics
395,200 people employed in US $300 billion globally
26
Five “Players” of Advertising
– Advertiser– Advertising Agency– Media– Vendors– Target Audience
27
1st Player
The Advertiser
28
Advertising Age
http://www.adage.com Leading National Advertisers Major brands with ad spending
> $94.4 million in 1998
29
Leading National Advertisers (1998) General Motors Corp. Proctor & Gamble Co. Phillip Morris Cos. DaimlerChrysler Sears, Roebuck, & Co. Ford Motor Co. AT&T Corp. Walt Disney Co. PepsiCo Diageo
30
Domestic Spending by Category (1999) Automotive Retail Movies & media Financial Medicines & pharmaceuticals Telecommunications Food Restaurants & fast-food Airline & ship travel; hotels & resorts Direct response companies
31
Top Advertisers in Austria (1998) Proctor & Gamble Co. Unilever BML-Konzern SPAR Mobilkom Austria AG Mars Inc. Henkel Volkswagen Max. MobilTelekom Service Ost. Lotterien
32
Top Global Marketers (1999) Proctor & Gamble Co. Unilever Nestle Volkswagen Ford Motor Co. General Motors Corp. Toyota Motor Co. Coca-Cola Co. Peugeot Citroen L’Oreal
33
2nd Player
The Advertising Agency
34
Advertising Agency
Account management Creative department Media Research & strategic planning
35
Account Management Represents agency to client Client relationship Knowledge of client’s business
– Competitive actions– Consumer trends
Helps set goals & budget Coordinates day to day work
36
Creative Department Creates ideas, images, & words make
up commercials and ads Copywriters Art directors Oversee print or broadcast production
37
Media Department Planning
– Plan media schedule Buying
– Execute media plan
38
Research Strategic planning Consumer research How does consumer interact with
brand? How does brand fit into consumer
lifestyle? Pretest and posttests
39
Example
1995 campaign for California Milk Processors Advisory Board
Declining sales from 1980 to 1993
Result? Increased sales
40
Paying the Agency
Commission system Fees
41
Commission
Rebates offered by media advertising agencies (15%)
42
Commission System Agency creates commercial for
advertiser Agency contacts TV station for air time TV station bills ad agency
Cost of air time $ 10,000Less 15% (1,500)Due $ 8,500
Agency bills advertiser $10,000
43
Fee-based Compensation
May vary according to departments or levels of salary
Or flat hourly rate Charges for out-of-pocket expenses,
travel, etc. Media charges are net of commissions
44
Advertising Age (1998)Charges Over Time 1982 71% commissions 8% fees 21% combination
1997 35% commissions 58% fees 7% combination
45
Full Service Agencies Four major staff functions
– Account management– Creative– Media planning and buying– Research
46
Top Ten Agency Brands (1999)
Grey Advertising (NY) J.Walter Thompson Co. (NY) McCann-Erickson Worldwide (NY) FCB Worldwide (NY) Leo Burnett USA (Chicago) Euro RSCG Worldwide (NY) Young & Rubicam Inc. (NY)
BBDO Worldwide (NY) DDB Worldwide Communications (NY) Ogilvy & Mather Worldwide (NY)
47
World Top Advertising Organizations (1999) Omnicom (NY) Interpublic Group of Cos. (NY) WPP Group (London) Havas Advertising (France) Dentsu (Tokyo) B Com3 Group (Chicago) Young & Rubicam Inc. (NY) Grey Advertising (NY) True North (Chicago) Publicis SA (Paris)
48
Agencies on the Internet
TBWA/Chiat/Day– http://www.chiatday.com/
Fallon McElligott– http://www.fallon.com/
Bozell Worldwide– http://www.bozell.com/
49
Agencies On The Internet
A comprehensive list of ad agencies can be found at the following address– http://www.digitaldirectory.com/
adagencies.html
50
Limited Service Agencies or Specialized AgenciesFunctions
– Creative, media buying, etc. Audiences
– Minority, youth, etc. Industries
– Healthcare, computers, B2B, etc. Communication Tool
– Direct marketing, interactive, etc.
51
Top 100 US Interactive Agencies (1999) MarchFirst Digitas iXL Grey Interactive Sapient Corp. Modern Media Aspen Interactive OglivyInteractive Luminant Worldwide Corp. AppNet
52
In-House Agencies Perform most of the functions of outside
agency Example: Large retailers
53
Why an In-House Agency? Savings Faster response Specialization Control
54
Problems with In-House?
Lack of initiative due to noncompetitive environment
Inability to keep up with marketplace Less objective
55
From The Internet
The Advertising Agency Contract--http://www.smartbiz.com/ sbs/arts/cwa4.htm
56
3rd Player
The Media
57
The Media
Channels of communication that carry message from advertiser to audience
58
Media Organizations
Sell space in print media Sell time in broadcast media Sell space/time in electronic media Assist in media selection and analysis Help w/ad production
59
Top Leading Media Co. (1998) Time Warner (NY)
AT&T Corp. (NY) CBS Corp. (NY) Walt Disney Co. (NY)
NBC TV (General Electric, Fairfield, Conn)
News Corp. (Sydney)
60
4th Player
Vendors
61
Vendors Freelancers/consultants Market researchers Freelance copywriters and graphic artists Photographers Songwriters Printers Direct-mail production houses Telemarketers Public relations consultants
62
5th Player
The Target Audience
63
Target Audience
Kellogg cereal?
Consumer Purchaser
64
Current Issues
Interactive advertising Integrated marketing communications Globalization Consumer power, relationship
marketing, permission marketing, and customization
65
Examples Peapod Mass customization
– Levi’s Original Spin